AOS Enjoying Results from Turnaround Efforts
Alpha and Omega Semiconductor Limited (AOS) reported financial results for the fiscal second quarter of 2017 ended December 31, 2016 as follows: revenue in the current quarter was $94.7 million compared with $79.8 million in the same period a year earlier; gross margin was 23.3% in the current quarter compared with 18.8% in the year-earlier period; operating income was $2.8 million compared with a loss of 0.3 million a year ago; net income was $2.8 million in the current period while the company had a net loss of $1.6 million in the year-earlier quarter; and the income per share in the current second quarter was $0.11 compared with a 0.07 loss per share in the second quarter of the previous fiscal year.
Commenting on the results, Dr. Mike Chang, the chairman and CEO of the company, stated, "Our turnaround efforts continued to produce solid results despite supply constraints at our third-party foundries. The gross margin and the bottom line exceeded expectations by virtue of a favorable product mix of higher margin products. The solid December performance also marked a successful conclusion of AOS recovery plan. In calendar 2016, we improved our financial performance significantly as compared to the prior year, including revenue increase of 14.6%, margin expansion of 390 basis points and return to profitability.
"As we enter the next chapter of our rejuvenated growth, we are optimistic that the continued execution of our business strategies will create a firm foundation for sustainable growth in the years ahead,â€ Chang concluded.
Business outlook for Fiscal Q3 ending March 31, 2017 are as follows: Revenue is expected to be between $90 million and $94 million. GAAP gross margin is expected to be 22% plus or minus 1%. GAAP operating expenses are expected to be in the range of $19 million plus or minus $1 million. Tax expense is expected to be approximately $1.0 million to $1.2 million. Loss attributable to non-controlling interest is expected to be between $1.2 million and $1.3 million. The projections on GAAP gross margin and GAAP operating expenses include estimated share-based compensation expense of $1.6 million to $1.8 million.